TruAlt Bioenergy IPO: Subscription, GMP & What Investors Should Know

TruAlt Bioenergy’s IPO, opened for subscription on September 25, 2025, is sized at ₹839.28 crore, with a price band of ₹472–₹496 per share. The issue includes a fresh issue of around ₹750 crore and an offer-for-sale (OFS) of ₹89.28 crore. 

The allotment is expected to be finalized by September 30, and listing is anticipated on October 3 on both NSE and BSE.

Subscription Status Through the Days

• Day 1: The IPO saw tepid response initially, with ~8% subscription by mid-day. 
• Day 2: By the second day, the subscription rose to ~49%, with investors placing bids for 60.38 lakh shares against 1.23 crore shares on offer. 
• Day 3 (Final Day): The IPO got fully subscribed, crossing 10.55× subscription as of early afternoon. The retail portion was subscribed ~5.12×, the NII category ~35.73×, and QIBs ~1.15×. 

In grey market terms, the grey market premium (GMP) reached ₹109, implying expected listing near ₹605, which is about 21.98% above the upper band. Other sources show GMP surging ~22% on final day.

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Company Business, Use of Proceeds & Financials

TruAlt Bioenergy is a biofuel / ethanol producer. They operate five plants across India, with production tied to both molasses/syrup feedstocks and plans to expand into compressed biogas (CBG) and next-generation biofuels.

The IPO funds are proposed to be used for:

• Setting up multi-feedstock operations – diversification of input sources. 
• Working capital requirements – to support day-to-day operations and supply chain costs.
• General corporate purposes – debt reduction, expansion, etc. 

SBI Securities has highlighted that from FY22 to FY25, the company delivered strong CAGR growth in revenue / EBITDA / PAT of approximately 58% / 72% / 103%, respectively. At the upper band, the post-issue P/E valuation is ~29× FY25 earnings.

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Risk Factors & Analyst Views

While the bioenergy sector holds promise—given India’s push toward ethanol blending, green energy, and sustainable fuel solutions—risks remain. Feedstock volatility (sugar cane, molasses), regulatory changes in excise or policy, competition and scale execution are significant variables. 

Analysts suggest subscribing is attractive given the GMP, growth prospects, and strategic direction, but caution that realization of business plans and financial discipline will be key. 

The TruAlt Bioenergy IPO has drawn considerable market interest, commanding strong subscription and a high GMP, pointing toward potential listing gains. For long-term investors, the story will hinge on execution, scaling biofuel operations, and navigating sectoral risks.